Bi-oriented polyamidehas occurred because of over-investment in new capacity

World capacity in bi-oriented polyamide (BOPA) is heading for oversupply, following over-investment in new equipment.

Total production capacity stands at 126,000tpa, but this is set to double to 250,000tpa by 2007, according to a report from consultancy PCI Films. This will far outstrip demand, which is likely to grow at around 10% per year in the same period.

PCI managing director Simon King said: “If all the extrusion machines on order are installed, it will take at least until 2008/09 to bring the market back to any semblance of balance.” Much of the new capacity will be in China, says the report.

In Europe, the major converters of BOPA film are Germany, Italy, Scandinavia and France. By far the most popular use of the films – accounting for 82% of demand – is for food packaging.